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On November 29, the European Parliament adopted a draft text on banking union within the eurozone, giving the European Central Bank (ECB) the role of sole supervisor of around 6000 European banks. The text provides "full powers" to the ECB, saysEl País, adding that the ECB will supervise national banks, those which have asked for help and those whose problems could pose a systemic risk to the entire sector.
As for regional banks, they fall under the control of national banking authorities, but the ECB may exercise control "should it deem it appropriate". The proposal, which was voted on by the Commission for Economic and Monetary Affairs, has been rejected by the British and German conservatives, with Germany wary of the Landsbanken regional banks, which are under the control of the European supervisor.
The bill passed by Parliament will be debated first by Finance Ministers on December 4. Regarding when the bank might undertake its new duties, continues El Pais, ECB President –
Mario Draghi has said that the ECB will be ready in January 2014, which is an ambitious but feasible date, despite the obstacles set by Germany. But for that to work, this requires a decision at the December summit.
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